Mike Crosbie, Chief Business Officer of poundtoken (GBPT), an issuer of a British Pound-backed stablecoin, has distributed a comment on the Bank of England’s recent missives on crypto asset risks.
Like other central government regulators, the Bank of England has been keenly observing the emerging crypto asset marketplace watching for signs of systemic risk while pondering the benefits of distributed ledger technology. As the UK has determined its desire to be a top crypto hub, the Bank must certainly enhance its oversight of the digital asset ecosystem. Crosbie states that it is correct for the Bank of England to say crypto risks must be addressed as the metaverse grows from its early stages:
“Currencies must be regulated with care and attention to ensure that people and businesses are protected from volatility. This takes time, and it’s right that regulators are taking steps to regulate cryptocurrencies and stablecoins,” stated Crosbie. “That said, we would like to address the Bank of England’s suggestion that stablecoins cannot match the necessary standards for the metaverse,” Crosbie said. “Stablecoins have strived to ensure that they are as trustworthy as possible, working with regulators and custodians to improve security and protection. Our stablecoin, poundtoken (GBPT) is a good example of this; we are working closely with our regulator (the Financial Services Authority), and we are audited by KPMG.”
He added that currencies would evolve alongside reforms and regulations towards the common goal of safety and stability. Crosbie believes that, over time, as the metaverse develops, risks will be reduced.
“As the Bank of England says, the dangers of high-risk cryptoassets are a possibility rather than an inevitability. We anticipate that systematic stability will come as market forces strive toward trusted currencies in the metaverse.”
poundtoken is a business name of Blackfridge SC Limited incorporated in the Isle of Man. It is licensed and regulated by the Financial Service Authority and is participating in the regulatory sandbox.
poundtoken’s GBP stablecoin is said to be 100% backed by reserves and the company will receive monthly attestations completed by KPMG as to its backing. The company has yet to post its first attestation.